Crude oil is still the most important global energy source and is significant for producing synthetic materials. It can not only be traded in the futures market and with CFDs (contract for difference) but with binary options as well. The main advantage of binary options is that, on the one hand, they are very easy to handle and on the other hand that with digital options, which is just another word for the more common binary options, you don’t need to have a huge trading account to get going. There are brokers like 24Option that allow you to open an account with just $250.
The market of crude oil
The share of crude oil in the entire global production volume of commodities is nearly 45 percent. This makes crude oil the most important commodity by far. There are a couple of dozens varieties which are distinguished by the deposit location, the weight and the viscosity. WTI (West Texas Intermediary) is produced in Midland, Texas, and is the most popular futures contract in the US.
Crude oil is a limited resource and it is getting more and more difficult to exploit new oil fields. The supply gets shorter but the demand rises continually. The increasing living standards and the economic growth in countries like China or India creates a rising demand. This has a huge impact on the future development of the oil price.
Binary options and trading oil
Binary options are perfect to trade oil. The main advantage, in comparison with the futures market, is that you aren’t affected by the high volatility of this commodity at all. This is because you can’t be stopped out from your position like in the futures market – simply because you don’t need stops. Basically you are just betting on the direction of the oil price development until the option expires. If your prediction comes true, you win.
Where to trade oil binary options
Our recommendation for trading oil binary options is the brokerage house 24Option. With 24Option you can put all different kinds of trading strategies in place while trading different various kinds of options.